Global logistics real estate firm Prologis will acquire competing industrial REIT, Denver-based DCT Industrial Trust Inc. The $8.4 billion deal is an all-stock transaction and comes at a time when industrial real estate is seeing record demand, spurred on by the growth of e-commerce.
Shareholders will acquire 1.02 Prologis shares in exchange for every DCT share they own. The transaction, expected to close in the third quarter, has been unanimously approved by both companies’ boards but still must win the approval of DCT stockholders and clear federal regulators.
The deal includes over 7 million square feet of development, redevelopment and value-added projects and 410 acres of land either in pre-development or under contract or option. The merger will give Prologis a better presence in several markets, including Atlanta, the Bay Area, Southern California, New Jersey, New York and Seattle.
Headquartered in San Francisco, Prologis is an S&P 500 member with $79 billion in assets under management across 684 million square feet, as of December 31, 2017.